Commonwealth of Massachusetts | Public Employee Retirement Administration Commission
Five Middlesex Avenue, Suite 304, Somerville, MA 02145
Ph 617 666 4446 | Fax 617 628 4002 | TTY 617 591 8917 | www.mass.gov/perac
Domenic J. F. Russo, Chairman | A. Joseph DeNucci, Vice Chairman
Mary Ann Bradley | Paul V. Doane | Kenneth J. Donnelly | James M. Machado | Donald R. Marquis
Joseph E. Connarton, Executive Director
May 2, 2008
Mr. William Farmer, Chairman
Brockton Retirement Board
15 Christy’s Drive, Suite 2
Brockton, MA 02301-1813
REFERENCE: Report of the Examination of the Brockton Retirement System for the three -year period from January 1, 2004 through December 31, 2006.
Dear Chairman Farmer:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Brockton Retirement System for the most recent period referenced above. We conduct these visits as a regular part of the oversight process. They are designed to ensure the timely implementation of corrective action for the recommendations cited in that report. The results are as follows:
1. The Audit Report cited findings that some expenses are being misclassified in the general ledger. Invoices are not being stamped paid after processing.
Follow-up Result: A review of the general ledger indicates that all expenses that were misclassified have been reclassified and are being charged to the correct account. A review of the general ledger also indicates that expenses are being properly classified. Invoices are now being stamped paid after processing. This issue is considered resolved.
2. The Audit Report cited a finding that as reported in the prior two audits, the Board calculates the three-year average from recorded deduction amounts. Because the Board does not receive detailed payroll information, the accuracy of the deductions is not confirmed. This allows for the possibility of generating an incorrect average salary. No department-head approval or verification of salary information is obtained in an effort to prevent miscalculations.
Follow-up Result: The Board has purchased new software from Tyler Technologies and is working with the city auditor to ensure that the new software provides the necessary information. The Board Administrator expects to have the payroll system in operation by the end of the calendar year. This issue is considered resolved.
3. The Audit Report cited a finding that the Board does not receive adequate information with which to ascertain the accuracy of members’ deductions. Reports lack fundamental detail as to what pay categories are considered subject or not subject to retirement deductions and are insufficient to determine that contributions are only taken from regular compensation.
Follow-up Result: The new software purchased from Tyler Technologies, referenced above, will provide the necessary information to ascertain the accuracy of members’ deductions and will provide the necessary detail to ensure what pay categories are subject and not subject to retirement deductions. The new software will also determine that contributions are only taken from regular compensation. This issue is considered resolved.
The Commission wishes to acknowledge the significant effort demonstrated by the staff of the Brockton Retirement System to correct the deficiencies cited in the most recent examination of the system.
Thank you for your continued cooperation in this important matter.
Sincerely,
Joseph E. Connarton
Executive Director